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1101~07:J :JO Al1S~3/\1Nn 

Appr ovea \.Joae 1"'10 • .-Ju1. Registry No. 299-1-19 

NATIONAL RECOVERY ADMINISTRATION 

CODE OF FAIR COMPETITION 

FOR THE 

SAMPLE CARD INDUSTRY 

AS APPROVED ON FEBRUARY 19, 1934 

' . ' 

WE ·oo OUR PART 

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-·-··-----l ,. ---- I f/ 

UNITED STATES 

GOVERNMENT PRINTING OFFICE 

WASHINGTON : 1934 

l 

I I 

For sale by the Superintendent of Documents, Washington, D.C. • • - - • • • • Price 5 cents 
This publication is for sale by the Superintendent of Documents, Government 

Printing Office, Washington, D.C., and by district offices of the Bureau ot 

Foreign and Domestic Commerce. 

DISTRICT OFFICES OF THE DEPARTMENT OF COMMERCE 

Atlanta, Ga.: 504 Post Office Building. 

Birmingham, Ala. : 257 Federal Building. 

Boston, Mass.: 1801 Customhouse. 

Buffalo, N.Y.: Chamber of Commerce Building. 

Charleston, S.C.: Chamber of Commerce Building. 

Chicago, Ill.: Suite 1706, 201 North Wells Street. 

OleYeland, Ohio: Chamber of Commerce. 

Dallas, Tex.: Chamber of Commerce Building. 

Detroit, :Mich.: 801 First National Bank Building. 

Houston, Tex. : Chamber of Commerce Building. 

Indianapolis, Ind. : Chamber of Commerce Building. 

Jacksonville, Fla.: Chamber of Commerce Building. 

Kansas City, Mo. : 1Q28 Baltimore A venue. 

Los Angeles, Calif.: 1163 South Broadway. 

Louisville, Ky. : 408 Federal Building. 

l\1emphis, Tenn. : 229 Federal Building. 

Minneapolis, l\1inn.: 213 F deral Building. 

New Orleans, La.: Room 225-A, Customhouse. 

New York, N.Y.: 734 Customhouse. Norfolk, Va.: 406 East Plume Street. 

Philadelphia, Pa. : 422 Commercial Trust Building. 

Pittsburgh, Pa.: Chamber of Commerce Building. 

Portland, Oreg. : 215 New Post Office Building. 

St. Louis, Mo. : 506 Olive Street. 

San Francisco, Calif. : 310 Customhouse. 

Seattle, .. Wash. : 809 Federal Office Building. 
Approved Code No. 301 

CODE OF FAIR COMPETITION 

FOR THE 

SAMPLE CARD INDUSTRY 

As Approved on Feb1·uary 19, 1934 

ORDER 

APPROVING ConE OF F Arn COMPETITION FOR THE SAMPLE CARD 

INDUSTRY 

An application having been duly made pursuant to and in :full 

compliance with the provisions o:f Title I o:f the National Industrial 

Recovery Act, approved June 16, 1933, :for approval o:f a Code of 

Fair Competition :for the Sample Card Industry, and hearings having 

been duly held thereon and the annexed report on said Code, containing findings with respect thereto, having been made and directed 

to the President: 

NOW, THEREFORE, on behal:f o:f the President of the United 

States, I, Hugh S. Johnson, Administrator for Industrial Recovery, 

pursuant to authority vested in me by Executive Orders of the President, including Executive Order No. 6543-A, dated December 30, 

1933, and otherwise; do hereby incorporate by reference said annexed 

report and do find that said Gode complies in all respects with the 

pertinent provisions and will promote the policy and purposes of 

said Title of said Act; and do hereby order that said Code of Fair 

Competition be and it is hereby approved; provided, however, that 

the provisions of Article VI, Sections 2 to 9 inclusive, insofar as they 

prescribe a waiting period between the filing with the Code Authority 

(i.e. actual receipt by the Code Authority) and the effective date of 

revised price lists or revised terms and conditions of sale be and they 

are hereby stayed pending my :further order; provided :further, that 

within ninety days I may direct that there be a further hearing on 

such of the provisions of said Code as I may designate, and that any 

order which I may make after such hearing shall have the effect of a 

condition on the approval of said Code. 

Approval recommended: 

GEO. L. BERRY, 

HUGH s. JOHNSON, 

Administrator /01' l ndust?"ial R ecovery. 

Divuion Adniinistrator. 

w .ASHINGTON, D.C., February 19, 1934. 

41486°-376- 113-34 (231) 
REPORT TO THE PRESIDENT 

The PRESIDENT, 

Tlie l¥hite House. 

Srn: This is a report of the hearing on the Code of Fair Competition for the Sample Card Industry, conducted in vVashington on 

November 1, 1933, in accordance with the provisions of Title I of the 

National Industrial Recovery Act. 

HOURS AND WAGES 

The Code proYides a standard 40 hour week for factory workers 

with a weekly tolerance of eight hours to be paid for as overtime. 

The usual exceptions are made in regard to non-productive employees Office employees are limited to an average of 40 hours per 

week over an eight week period. 

The minimum wage rate fo:r hourly paid employees is 40¢ per hour 

for 1nales and 30¢ per hour for females. Office employees will receive 

a minimum wage of $16.00 per week. 

OPEN PRICE PLAX 

An open price plan o.f selling is provided and selling below cost, 

except to meet competition, is prohibited. 

OTHER PROYI IONS 

Provision is made for furnishing the Administrator with such 

stati tical data as he may require. 

ECO .. -murc EFFECT OF THE CODE 

The Industry employed in 1929 approximately 2,000 persons and 

with an increase of four plants about the same nun1b.er for the first 

six months of 1933. This shows an increase of 400 employees over 

the number employed in 1932. The Industry has two -very sharply 

pronounced peak periods in a year and the effect of the Code will 

be to employ, during such limited periods, about 300 additional 

workers. 

From figures submitted by nineteen to twenty-one plants in the 

Industry the payrolls had increased over 20% from April to September 1933. This reflects the President's Re-employment Progra1n 

as the volume of production was equal in those two months. The 

total payrolls, a,s a result of the Code, will maintain this increase of 

o-ver 20 ;1⁄4, 

(232) 
233 

FINDINGS 

The Deputy Administrator in his final report to me on said Code 

having found as herein set forth, and on the basis of all the proceedings in this matter 

I find that: 

(a) Said Code is well designed to promote the policies and purposes of Title I of the National Industrial Recovery Act, including 

removal of obstructions to the free flow of interstate and foreign 

commerce which tend to diminish the amount thereof ancl will provide for the general welfare by promoting the organization of industry for the purpose of cooperative action among the trade groups, 

by inducing and maintaining united action of labor and management 

under adequate governmental sanction and supervision, by eliminating unfair competitive practices, by promoting the fullest possible 

utilization of the present productive capacity of industries, by avoiding undue restriction of production ( except as 111ay be temporarily 

required), by increasing the consumption of industrial and agricultural products through increasing purchasing power, by reducing 

and relieving unemployment, by improving standards of labor, and 

by otherwise rehabilitating industry. (b) Said Industry normally employs not more than 50,000 employees and is not classified by n1e as a major industry. 

( c) The Code as approved complies in all respects with the pertinent provisions of said Title of said Act, including without limitation Subsection (a) of Section 3, Subsection (a) of Section 7, and 

Subsection (b) of Section 10 thereof; and that the applicant Association is an industrial Association truly representative -of the aforesaid Industry; and that said Association imposes no i~1equitable 

restrictions· on admission to membership therein. 

( d) The Code is not designed to and will not permit monopolies 

or monopolistic practices. 

( e) The Code is not designed to and will not eliminate or oppress 

small enterprises and will not operate to discriminate against them. 

(f) Those engaged in other steps of the economic process have not 

been deprived of the right to be heard prior to approval of said Code. 

For these reasons this Code has been approved. 

Respectfully, 

FEBRUARY 19, 1934. 

HUGH S. JOHNSON, 

Acl1ninistTator. 
CODE OF FAIR COMPETITION FOR THE SAMPLE CARD 

INDUSTRY 

To effectuate the policies of Title I of the National Industrial 

Recovery Act, the following is hereby established as a Code of Fair .Competition for the above named Industry and shall be binding on 

every member thereof. 

ARTICLE I-DEFINITIONS 

The following words are used in this Code with the meaning herein 

set forth: 

"Industry "-The manufacture of sam.ple cards and sample bindings, including the preparation of products for sampling. 

"Member "-A natural person, partnership, corporation, association, trust, trustee, trustee in bankruptcy, receiver, or other form of 

entBrprise, engaged in such Industry. "Act "-Title I of the National Industrial Recovery Act. 

"Administrator "-The Administrator for Industrial RecoYery 

under Title I in the Act. 

ARTICLE II-ORGANIZATION AXD AmuINISTRATION 

1. The members of the Board of Directors of the Sample Card 

Manufacturers Association, Inc., together with such other person 

or persons as the Administrator may designate, are hereby constituted the Code Authority of the Industry. The members of the Code 

'.Authority designated by the Administrator shall ha.ve no vote and 

shall serve without recompense from the Industry. 

2. The said Association shall impose no inequitable restrictions on 

membership and shall file with the Administrator certified copies of 

any amendments of its By-Laws relating to eligibility or admission 

to membership in said Association, or relating to the method of 

selection of the members of such Board of Directors which said 

Association may hereafter adopt. 

3. The Administrator may at any time prescribe a di:ff erent method 

for selecting .the Industry members of the Code Authority, and 

thereafter, such members shall be chosen in the manner so prescribed. 

4. The Code Authority is charged generally with the duty of 

administering this Code. If the Administrator shall determine that 

any action of the Code Authority, or any agency thereof, may be 

unfair or unjust or contrary to the public interest, the Administrator 

may require that such action be suspended -to afford an opportunity 

£or inve tigation of the merits of such action and further consideration by the Code Authority or agency pending final action which shall 

not be effective unless the Administrator approves or unless he shall 

fail to disapprove after thirty days notice to him 0£ intention to 

proceed with such action in its original or n1odified form. 

(234) 
235 

5. The expenses of administering this Code shall be borne pro rat.a, 

in accordance with a formula to be adopted by the Code Authority, 

by all members of the Industry who accept the benefit of the services 

of the Code Authority or otherwise assent to this Code. 

6. The Code Authority shall have power to investigate alleged violations of this Code and acts or courses of conduct by any member 

which are or appear to be contrary to the policy of the Act or which 

tend or may tend to render ineffective this Code and to report the 

same with recommendations to the Administrator. 

7. The Code Authority is hereby constituted the agency to endeavor 

to effect, by arbitral proceedings or otherwise, adjustments of contracts entered into by members of the Industry, where the costs of 

executing such contracts are increased through the application of the 

provisions of the Act or of this Code. 

ARTICLE III-Houns OF LABOR 

1. Employees in the Industry shall not be required or pennitted to 

work hours in excess of the limits prescribed in the following 

schedule: 

SCHEDULE OF WORKING HOURS 

(a) Watchmen: Fifty-six (56) hours in any one week, but not 

more than six (6) days in any seven (7) day period; or fifty-six 

( 56) honrs in any one week, but not more than eight ( 8) hours in any 

one day. 

(b) Chauffeurs, truckdrivers, and their helpers: One hundred 

eighty (180) hours in any period of £our ( 4) consecutive weeks, provided, however, that time worked in excess of nine (9.) hours in any 

one day or forty-five ( 45) hours in any one week shall be paid for as 

not less than time and one-third. 

( c) Engineers, firemen, electricians : One hundred sixty-eight 

(168) hours in any period of four (4) consecutive weeks, provided, 

however, that time worked in excess of nine (9) hours in any one day 

or forty-five ( 45) hours in any one week shall be paid for as not less 

than time and one-third. 

( d) All other laborers, mechanical workers or artisans employed 

in any plant, mill or factory or on work connected with the operation of such plant, mill or factory: Eight (8) hours in any one 

day and forty (40) hours in any one week, provided, however, that 

these 1naximum. limits may be exceeded for any reason at any time 

provided that all time work in excess of the maximums prescribed 

shall be paid for as not less than time and one-third, and provided 

further, that no employee shall be required or permitted to work in 

excess of ten (10) hours in any one day or forty-eight (48) hours in 

any one week. 

( e) Employees regularly engaged in a managerial or executive 

capacity and their personal secretaries,. fore1nen and supervisors, 

receiving thirty-five dollars ($35.00) or more per week, and outside 

salesmen : No limitation. 

(f) All other employees: Forty-eight (48) hours in any one week 

but not to exceed t..b.ree hundred and twenty (320) hours in any 

perio l of eight ( 8) consecutive weeks. 
236 

2. No limitation contained in said schedule shall apply to employee· of any clas when engaged in em.ergency repairs or emergency 

maintenance work occasioned by breakdowns or involving protection 

of lif or property, provided, however, that all time worked in 

exce . of the limitations prescribed in aid schedule shall be paid 

for a not less than time and one-third. 

3. No emplo3 er . hall knowingly permit any employee to work for 

any time which, when totalerl with that already performed with 

another employer or employers in this Indu try, exceeds the 1naxirn um permitted herein. 

4. Piece work . hall not be permitted in any branch of the 

Indu try. 

5. No employee except watchmen shall be required or permitted to 

work on Sunda} s, or on Jan nary 1, i1ay 30, July 4, Thanksgiving 

Day, or December 25. 

(5 . o female employee, other than those covered by paragraphs 

( e) and ( f) of Section 1 hereof, shall be required or permitted to 

work between the hours of 7: 00 P.M. and 7: 00 A.11:. 

AnTrcLE I v - ·v.;r AGEs 

1. The minimum rate of wage of any laborer, mechanical --worker 

or arti an employed in any plant 1 mill or factory or on work connected with the op 0 ration of any . uch plant, mill or factory hall 

be as follows : 

Male labor, 40 cents per hour 

Fe1na.le labor, 30 cents per hour. 

2. The minimmn rate of wage for all other employee shall be 

as follows: 

(a) $16.00 per week. 

(b) Part-time employee covered by the prov1s10n of this 

Section shall be paid at the rate of not less than 40¢ 

per hour. 

3. Thi Article establishe a minimum rate of pay ,vhich shall 

apply irrespectiYe of whether an employee is actually compensated 

on time-rate or other basis. 

4. Female employees performing substantially the same work as 

male employees, shall receive the same rate of pay as male ern.ployees. 

The Code Authority shall within ninety (90) days after the effectfre date of this Code file with the Administrator a description of 

all occupations in the Industry in which both men and "TI"'omen are 

employed. 

5. The wage rate of all en1ployees receiving more than the mini1num rates herein prescribed shall be reviewed and such adjustments 

1nade therein as are equitable in the light of all the circumstances 

but in no ca e shall such adjustments involve decreases. "'Vithin 

sixty (60) clays after the effecti-...-e date hereof, the Code Authority 

shall report to the Administrator the action taken by all members 

of the Industry under this Section. 

6. Office and errand boy and girls under eighteen ( 18) years of 

age, to the extent of no more than 5% of the total nmnber of employee desrribed in Section 2 hereof, may be employed at a wage 

of not le · than 80 ,1o of the minimum pre cribecl by said Section, 
237 

provided that at least one such office and/or errand boy or girl may 

be employed by each member. 

7. A person whose earning capacity is limite<l because of age or 

physical or 1nental handicap m.ay be employed on light work at a 

wage of not less than 80% of the minimum prescribed by this Code, 

provided the State Authority or other agency designated by the 

United States Department of Labor shall have issued a certificate 

authorizing his employment on such basis. Each member shall file 

with the Code Authority a list of all such persons employed by him. 

The provision of this Section requiring a certificate of authority 

shall not become effective until sixty (60) days after the effective 

date of this Code. 

ARTICLI<.: Y-GENERAL L ABOR Puonsroxs 

1. No person tmder sixteen (16) years of age shall be employed in 

the Industry. No person 1mder eighteen (18) years of age shall be 

employed at operations or occupations which are hazardous in nature 

or dangerous to health. The Code Authority shall submit to the 

Administrator within sixty (6.0) days after the eff"ctive date of this 

Code a list of such operations or occupations. In any State an 

employer shall be deemed to have complied with this provision as to 

age if he shall have on file a ce,rtificate or pennit duly signed by the 

Authority in such State empowered to issue employment or age certificates or pennits, showing that the en1ployee is of the required age. 

2. Employees shall ha,ve the right to organize and bargain collectively through representatives of their own choosing, and shall be 

free from the interference, restraint, or coercion of employers of labor, 

or the.ir agents, in the designation of such representatives or in selforganization or in other concerted activities for the purpose of collective bargaining or other mutual aid or protection. No employee and 

no one seeking employn1ent shall be required as a condition of employment to join any company union or to refrain from joining, organizing, or assisting a labor organization of his own choosing. Employers 

shall comply with the maxin1um hours of labor, 111inimmn rates of 

pay, and other conditions of employment, approved or pre cribed by 

the President. 

3. No provision in this Code shall supersede any State or Federal 

law which imposes on employers more stringent requirements as to 

age of employees, wage ·, hours of work, or as to safety, h 0 alth, sanitary or genera_! working conditions or instrrance or fire protection, 

than are imposed by this Code. 

4. No employer shall reclassify employees or duties of occupations 

performed or engage in any other subterfuge for the purpo e of 

def ea ting the purposes or provisions of the Act or of this Code. 

5. All employers shall post copies 0£ Articles III, IV and V of this 

Code in conspicuous places accessible to employees. 

6. Every employer shall make reasonable provisions for the afety 

and health of his employees at the place and during the hours of their 

employm.ent. Standards for safety and health shall be submitted b_y 

the Code Authority to the Administrator within six ( 6) months after 

the effective date of thi Code. 
238 

7. The ode Authority shall make a tudy of conditions in the 

In<lu tr} to cletermin th fea ibility of th adoption of a ho~er 

working week an l shall within thre (3) months after the effective 

date of thi le mak a report of it findinO', to the Admini trator. The Cod Authority shall also ·ubmit to the Admini trator 

within six ( 6) month aft r the effective date of this o l a plan 

for the tabilizati n and regularization of employment . . The manu:factn ·e or partial manufacture of any product of 

the Indu try in home hall be prohibit cl. 

ARTICLE I-Ac o NTING- ELLING 

1. The Code Authority hall, as oon a practicable, formulate a 

standard method of accounting and costing for the Indu try and 

submit t.h ..,ame to the Administrator. ,vhen it shall have been 

approv d by the Admini trator, every member shall u e an accountino· and costing ystem which conforms to the principle of and is 

at lea t as detailed and complete a , such standard method. 

2. The Code Authority may from time to time determine that an 

open price plan of elling uch product or products of the Indu try 

as it hall specify shall be put into effect on uch date as it hall fix, 

Notice of uch determination shall be announced to all known members of the Industry who manufacture uch products not le than 

thirty (30) day prior to the elate so fixed. 

3. At least ten (10) day prior to such elate, every uch member 

shall file with the Code Authority a schedule o:f prices and term of 

sale :for all such products or, in the alternative, shall be deemed to 

have filed a schedule conforming in re pect to price and terms o:f 

sale with the ..,chedule at any time on file which state the lowest 

pri~e and the mo t :favorable terms. 

4. All such chedules shall be in such :form as the Code Authority 

shall prescribe and shall contain all information necessary to purmit any interested person to determ.ine the exact net price per unit 

after all di counts or other deductions have been made, whether 

pertaining to a single order, a commitment :for :future cleliYery or 

a contract. All such original schedules hall become effective on 

the date fixed by the Code Authority as provided in Section 2 hereof. 

5. A revi eel chedule or che,clules, or a new checlule or schedules, 

or a notice of withdrawal o:f a schedule previou ly filed may be 

filed by a member with the Code Authority at any time, provided, 

however, that any member who withdraw a schedule without substituting a new chedule therefor shall be deemed to have filed a 

schedule conforming in respect to price and terms of sale with the 

schedule at any time thereafter on file which states the lowest price 

and the 1no t :favorable terms. Any schedule or notice filed hereunder shall become effective five days after the datB of filing provided, however, that an increased price may become effective at uch 

earlier date as the member filing the same shall fix. 

6. The Code Authority shall promptly supply all members of the 

Industry who manufacture any particular product with copies of 

all schedules1 revised chedule , and notices of withdrawal, which 

pertain to such product. Imm diately upon receipt o:f information 

relative to the withdrawal of a price :for any product, any member 
239 

may file notice of withdrawal of his own price for the same product 

effective as of the same date as the notice of withdrawal of such 

other member. Immediately on receipt of information that a schedule then on file has been revised, or that a new schedule has been 

filed, any member may file a revised schedule conforming as to price 

and terms to the schedule of such other member, and effective on 

the same date, or he may notify the Code Authority that he adopts 

as his own the schedule of such other member. In the latter event, 

he shall be deemed to have filed a revised schedule conforming to 

the revised schedule of such other n1.ember. 

7. No such schedule of prices and terms of sale filed by any member, or in effect at any time, shall be such as to permit the sale of 

any product at less than the cost thereof to such member determined 

in the manner provided in Section 11 hereof, provided, however, that 

any member may by notice to the Code Authority adopt as his own 

a lower price filed by another designated member. Such adoption 

shall become automatically void upon the withdrawal or revision 

upward of the price adopted. 

8. No member who shall have filed a price, or adopted as his own 

a price filed by another member for any product of the Industry, 

shall sell such product for less than such price or upon terms or conditions more favorable than stated in such price schedule. No member who shall have failed to file a price for any product for which 

the open price plan is in effect, shall sell such product at a lower 

price or on terms more favorable than the lowest price and most 

fa,-orable terms stated in any price schedule for such product then 

on file. 

9. The Code Authority shall furnish at cost to any non-member 

requesting them, copies of any price schedules which have been filed 

with it. Such price schedules shall be made available to nonmembers at the same time that they are sent to members.:-:' 

10. No member shall sell any product of the Industry for which 

no open price plan is in effect at less than the cost thereof to such 

111ember, determined as provided in Section 11 hereof, except to meet 

the price of a competitor whose price does not violate such Section. 

11. Cost, for the purposes of this Article, shall be determined pursuant to the method of accounting and costing prescribed as provided 

in Section 1 hereof as soon as such method is adopted and approved, 

and theretofore pursuant to the method employed by such member 

subject to such preliminary rules as the Code Authority shall from 

time to time prescribe with the approval of the Administrator. 

12. For the purpose of determining whether Sections 7 and 10 

hereo:f have been complied with, every member shall upon the request of the Code Authority furnish ~a designated agency of the 

Code Authority, in respect to closed transactions only, with complete 

information in regard to any quotation, order, contract, or sale of 

any product of the Industry, including information as to specifications, quantities, price, conditions of storage, transportation or delivery, terms of billing, cash or trade discounts allowed and other 

pertinent facts relating to such quotation, contract or sale. 

"' See pa t·ugraph 2 of Order approving tllis Code. 
240 

13. Nothing herein contained shall be construed to prevent the 

disposition of distress merchandise required to be sold· to liquidate 

a defunct or insolvent business or of discontinued lines, damaged 

goods or seconds, in such manner, at such price, and on such terms 

and conditions as the Code Authority and the Administrator 1nay 

approve. 

14. Nothing herein contained shall be construed to prevent the fulfillment of a bona fide contract existing on the effective date of this 

Code. 

ARTICLE VII-REPORTS AND STATISTICS 

1. Each member shall prepare and file with an impartial agent 

designated by the Code Authority at such times and in such manner 

as it may prescribe, such statistics, data and information relating to 

plant capacity, volume of production, volume of sales in units and 

dollars, orders received, unfilled orders, stocks on hand, inventory 

both raw and finished, number of employees, wage rates, employee 

earnings, hours of work and other matters, as the Code Authority 

or the Administrator may from time to time require. Any or all 

information so furnished by any member shall be subject to checking 

for the purpose of verification by an examination of the books, 

accounts and records of such member by any disinterested accountant 

or accountants or other qualified person or persons designated by 

the Code Authority. 

2. Except as otherwise provided in the Act, or in this Code, all 

statistics, data and information filed or required in accordance with 

the provisions of this Code shall be confidential and the statistics, 

data and information of one member shall not be revealed to another 

member. No such data or information shall be published except in 

combination with other similar data and in such a manner as to 

avoid the disclosure of confidential information. The Code Authority shall arrange in such manner as it may determine for the current 

publication of Industry statistics to members. 

3. The Code Authority shall make such reports to the Administrator as he may from time to time require. 

4. In addition to information required to be submitted to the Code 

Authority there shall be furnished to Government Agencies such 

statistical information as the Administrator may deem necessary for 

the purposes recited in Section 3 (a) of the Act. Nothing contained 

in this Code shall relieve any member of any existing obligations to 

furnish reports to any Government Agency. 

ARTICLE VIII-MONOPOLIES 

1. No prov1s10n of this Code shall be so applied as to permit 

monopolies or monopolistic practices, or to eliminate, oppress or 

discriminate against small enterprises. 

ARTICLE IX-RECOl\IMENDATIONS 

1. The Code Authority may, from time to time, present to the 

Administrator recommendations based on conditions in the Industry 

which will tend to effectuate the operation of this Code and the policy 

of the Act, and in particular along the following line : 
241 

(a) For the establishment of additional rules of Fair Trade Practices for the Industry and for the modification of its Trade Customs, 

and the enforcement thereof. · (h) For the establishment of plans to equalize production with 

demand, so that the interests of the Industry and i:he public 1nay be 

properly served. ( c) For dealing with any other inequality that m.ay arise to endanger the stability of the Industry and of production and employment. ( d) For an increase or decrease in the number of Industry members of the Code Authority and/or for a change in the method of 

choosing such n1en1bers. 

2. For the purpose of assisting the Code Authorities of the Paper. 

Manufacturing and/or Converting Industries in the a.djustment of 

all labor disputes and labor complaints arising within such Industries, the Code Authority shall consider the advisability of creating 

a Joint Industrial Relation,s Board for such Industries and shall 

report its recommendations to the Administrator. 3. Recommendations made pursuant to Sections 1 and 2 hereo:f 

when approved by the Administrator shall ha,e the ame force and 

effect as other provisions of this Code. 

ARTICLE X-TRADE PnA TICE 

1. The following are hereby constituted Trade Practices for the 

Indu -try and failure to comply with the provisions thereof shall be 

a violation of thi,s Code: 

(a) Members of the Industry shall not practice deception in regard to that which is sold or its selling price by -false or n1isleading 

description, statement, record, or undisclosed consideration. 

(b) Members shall refrain from dumping, deferred delivery, 

extension of stated credit and secret rebates. 

( c) Members shall not wilfully injure by falsely defaming a 

competitor's goods, credit, or ability to per.form his contracts. 

( d) l\1embers shall not wilfully induce or attempt to induce the 

breach of a competitor's contract. 

( e) No member shall give, permit to be gi Yen, or directly off er to 

give, anything of value for the purpose of influencing or rewarding 

the action of any employee, agent or representative of another in 

relation to the business of the employer of such employee, the principal of such agent er the represented party, without the knowledge of ,such employer, principal or party. The foregoing provisions shall not be construed to prohibit free and general distribution 

of articles commonly used for advertising except so far as such 

articles are actually used for commercial bribery as herein defined. 

(f) Ro member of the Industry shall ship goods on consignment, 

except under circumstance,s to be defined by the Code Authority 

where peculiar circumstances o.f the Industry require the practice. 

ARTICLE XI-GExERAL Pnov:rsroN 

1. If any member is al o a member of another industry, the pro- Yisions of this Code hall apply to and affE:ct only that part of his 

business ,,hich is included in this Induc:try. 
242 

2. Any work or process incidental to and carried on by a member 

at his plant as a part of the manufacture of any product of the 

Industry, shall be regarded as a part of this Industry. 

3. Such of the provisions of this Code as are not" required to be 

included therein by the Act, 111ay, with the approval of the Administrator, be modified and eliminated as changes in circumstances or 

experience may indicate. 

4. This Code and all the provisions thereof are expressly made 

subject to the right of the President, in accordance with the provisions of Section 10 (b) of the Act, from time to time to cancel or 

modify any order, approval, licen e, rule or regulation, is ued under 

Title I of said Act, and specifically, but without limitation, to the 

right of the President to cancel or modify his approval of this code 

or any conditions imposed by him upon his approval thereof. 

5. This Code shall become effective on the second Monday after 

the date upon which it shall be approved by the President of the 

United States. 

Approved Code No. 30L 

Registry No. 29~1-19. 

0